Portfolio Management Services (PMS) is a customized investment product and invest in securities like equity, fixed income securities etc. PMS provide comfort to the investors and generate superior returns in the long run. Investors who are looking for an alternative to direct equity can look to invest in PMS.

Portfolio Management

Who is an ideal PMS investor?
The Investment solutions provided by PMS cater to a NICHE SEGMENT of clients. The clients can be Individuals or Institutions entities with HIGH NET WORTH.

The offerings are usually ideal for investors:

who are looking to invest in asset classes like equity, fixed income, structured products etc ,

who desire personalised investment solutions ,

who desire long-term wealth creation ,who appreciate a HIGH LEVEL OF SERVICE.

So let us to come to main point – why invest in a PMS when one can directly invest in similar Equity stocks and can have a daily tracking?

Successful Investing essentially requires:

  • Expertise and special skill set to generate above average returns.
  • Dedication to create a portfolio of such companies
  • Gain in-depth sector knowledge and access to market intelligence/channel checks and gauge behavioral attributes.
  • Dispassionate decision making i.e. Buy/Sell decisions are taken purely basis fundamentals and not by sentiments.

A PMS portfolio, generally being a concentrated portfolio consisting around 20-25 stocks, each portfolio company can be given the required dedicated time and effort and many new opportunities can be looked for. In the past we have seen that professional fund management has generated better returns than Direct Equities. Moreover, PMS have generated superior returns compared to MFs & Indices (proxy for direct investment) over longer tenures.

PMS Returns

What are the benefits of PMS?

Professional Management:

The service provides professional management of portfolios with the objective of delivering consistent long-term performance while controlling risk.

Continuous Monitoring

It is important to recognise that portfolios need to be constantly monitored and periodic changes made to optimise the results.

Risk Control

A research team responsible for establishing the client's investment strategy and providing the PMS provider real time information to support it, backs any firm's portfolio managers.

Hassle Free Operation

Portfolio Management Service provider gives the client a customised service. The company takes care of all the administrative aspects of the client's portfolio with a periodic reporting (usually daily) on the overall status of the portfolio and performance.


The Portfolio Manager has fair amount of flexibility in terms of holding cash (can go up to 100% also depending on the market conditions). He can create a reasonable concentration in the investor portfolios by investing disproportionate amounts in favour of compelling opportunities.


PMS provide comprehensive communications and performance reporting. Investors will get regular statements and updates from the firm. Web-enabled access will ensure that client is just a click away from all information relating to his investment. Your account statements will give you a complete picture of which individual securities you hold, as well as the number of shares you own.
It will also usually provide:

the current value of the securities you own;
the cost basis of each security;
details of account activity (such as purchases, sales and dividends paid out or reinvested);
your portfolio's asset allocation;
your portfolio's performance in comparison to a benchmark;
market commentary from your Portfolio Manager

Customised Advice

PMS give select clients the benefit of tailor made investment advice designed to achieve his financial objectives. It can be structured to automatically exclude investments you may own in another account or investments you would prefer not to own. For example, if you are a long-term employee in a company and you have acquired concentrated stock positions over the years and have become over exposed to few company's stock, a separately managed account provides you with the ability to exclude that stock from your portfolio.


  • Portfolio Managers are required to be registered with SEBI
  • Minimum Investment Amount : Rs 50 Lacs
  • Partial Withdrawal allowed portfolio value does not fall below Rs. 50 lacs
  • Additional top –ups can be made any time
  • Mode of Tracking: Holding-cum-performance statement.
  • Mode of Payment: Cheque or Existing Portfolio of Stocks or Both

What is the tax treatment in PMS investment?

The tax liability of a PMS investor would remain the same as if the investor is accessing the capital market directly. However, the investor should consult his tax advisor for the same. The Portfolio Manager ideally provides audited statement of accounts at the end of the financial year to aid the investor in assessing his/ her tax liabilities.

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